Long Term Investing With Warren Buffett

Throughout his years, Warren demonstrated legendary success in the stock market and also became the largest shareholder and CEO of Berkshire Hathaway

. He continues to preach his philosophy of "value investing," which he describes as buying companies that perform well and holding on to them long term.

Born August 30, 1930 to a former stockbroker, Warren has demonstrated a lifetime achievement of incredible success as an investor and a philanthropist. As a child, Warren displayed early entrepreneurism by buying and reselling Coca Cola bottles for a higher price. At age eleven he bought his first shares in the stock market and learned his first valuable lesson on patience when he sold his share too soon.

If you look at a company's earnings and consistency, you can reasonably predict how they will be in the future. Mary Buffett describes Warren's simple mathematical equation in which he predicts profits through present and future values. Money does not have to be spent on research and development because the data is already there. "Think beer, think gum, think Hershey's," Mary continues, "As long as people use these predictable products, there will be predictable profits." Warren has shown a tendency to choose companies that he knows well and avoids initial public offerings. An initial public offering or "IPO" can be a risky investment considering the difficulty in predicting how a stock or share will do on its initial day of trading.

A lot can be learned from an American investor, industrialist, and philanthropist who even during a recession remains the third wealthiest person in the world as of 2010. Warren Buffett, often called the "legendary investor Warren Buffett," holds onto value investing and finds "outstanding companies at a sensible price." Author Mary Buffett discusses his strategy and emphasis on investing for the long term.

Born August 30, 1930 to a former stockbroker, Warren has demonstrated a lifetime achievement of incredible success as an investor and a philanthropist. As a child, Warren displayed early entrepreneurism by buying and reselling Coca Cola bottles for a higher price. At age eleven he bought his first shares in the stock market and learned his first valuable lesson on patience when he sold his share too soon.

According to Mary, we must always keep in mind that the stock market is very short sided. She quotes Warren, "Wall Street is the only place that people ride to work in a Rolls Royce to get advice from those who take the subway." If these people are the smart ones, why aren't they so rich? The truth is these people get their money from commissions, and they cannot invest long term. At the end of the year, everybody wants to be on top, and high returns need to be shown to customers. Since these results must be shown year after year, it does not make sense for these stock brokers to show a subpar year.

by: Frank Simms

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